I would rather have a cybersecurity firm like Ciphertrace try to step in and offer something that is working to preserve crypto than the government implementing their own form of regulated tracking.
They're just the "good cop" in a good cop/bad cop scenario. It's easy to think Ciphertrace is here to help you, but their primary role is convincing you to swallow these incredibly invasive AML requirements. At best, they're profiting from government overreach. At worst, they're literally just an arm of governments like the US.